Bulls Power Oil Trading Technical Analysis & Bulls Power Trading Signals

Developed by Alexander Elder

Bulls Power is used to estimate power of the Bulls (Buyers). Bulls Power estimates the balance of power between the bulls & bears.

This technical indicator aims at identifying if a bullish oil trend will continue or if the crude oil price has reached a point where it may reverse.

Calculation

A Oil Trading Price bar has 4 parameters: the Opening, Closing, High & Low of the oil price bar.

Each Oil Trading Price bar either closes higher or lower than previous oil price bar.

The highest crude oil price will indicate the maximum power of the Bulls within a oil price period.

The lowest crude oil price will indicate the maximum power of the Bears within a oil price period.

This Indicator uses the High of the crude oil price & a Moving Average (Exponential)

The moving Average represents the middle ground between sellers & buyers for a certain oil price period.

Therefore:

Bulls Power = High Oil Trading Price - Exponential Moving Average

Bulls Power

Oil Trading Technical Analysis & Generating Trading Signals

Buy Trading Signal

A buy oil signal is generated when the Bulls Power oscillator moves above Zero.

In an up crude oil trend, the HIGH is higher than EMA, so the Bulls Power is above zero & Histogram/Oscillator is located above zero line.

Exit Trading Signal

If the HIGH falls under EMA then it means that crude oil price are starting to fall, the Bulls Power histogram fall below the zero line.

The Triple Screen method for this indicator suggests identifying the crude oil price oil trend on a higher chart interval (like daily time frame) and applying the bulls power on a lower chart interval (like hourly time frame). Signals are traded according to the indicator but only in the direction of the long term oil trend in the higher time frame.